Security CodeS-29 CS Miyako-machi Saigawa PP

Asset Manager
Canadian Solar Asset management K.K.

12 th FP（ended June 2023）

Presentation Materials
Canadian Solar Infrastructure Fund, Inc.

Table of Contents
1. Financial Highlights ・・・・・・・・・・・・・・

2

Initiatives for Internal Growth・・・・・・・・・・・・・・・

29

Financial Highlights of 12th FP ・・・・・・・・・・・・・・・

3

Debt Profile (1) ・・・・・・・・・・・・・・・・・・・・・・

30

Analysis of Operating Revenues in the 12th FP・・・・・・・

4

Debt Profile（2） ・・・・・・・・・・・・・・・・・・・・・

31

Portfolio Power Generation Performance ・・・・・・・・・・

5

AUM Snapshot ・・・・・・・・・・・・・・・・・・・・・・

6

Asset List ・・・・・・・・・・・・・・・・・・・・・・・・・

ESG Initiatives (UN PRI / ESG Report) ・・・・・・・・・・・

32

ESG Initiatives (TCFD・SFDR) ・・・・・・・・・・・・・・・

33

7

ESG Initiatives (Green Finance) ・・・・・・・・・・・・・・

34

Impact of curtailment and installing online curtailment
controller・・・・・・・・・・・・・・・・・・・・・・・・・

9

Output Curtailment Outlook and Impact on CSIF・・・・・・

10

Appendix・・・・・・・・・・・・・・・・・・・・ 35

Unit Price Performance ・・・・・・・・・・・・・・・・・・

11

2. Major Topics ・・・・・・・・・・・・・・・・・

12

Overview of 3rd PO②・・・・・・・・・・・・・・・・・・・

14

Overview of 3rd PO③・・・・・・・・・・・・・・・・・・・

16

Overview of 3rd PO④・・・・・・・・・・・・・・・・・・・

17

Overview of 3rd PO①・・・・・・・・・・・・・・・・・・・

3. Earnings Forecast・・・・・・・・・・・・・・・

13

18

13th, 14th & 15th FP Earnings Forecast ・・・・・・・・・

19

Historical and Forecasted Dividend・・・・・・・・・・・・・

20

4. Management Policy・・・・・・・・・・・・・・

21

Aiming for JPY 200 billion in asset size based on solar power
plants・・・・・・・・・・・・・・・・・・・・・・・・・・・

22

Aim for Further Diffusion of Renewable Energy drawing on
Positive Stance of the Japanese Government・・・・・・・・

23

External Growth Strategy（Pipeline） ・・・・・・・・・・・

24

Abundant Pipeline Centered on Sponsor-Developed Assets
Assisting CSIF’s Growth ・・・・・・・・・・・・・・・・・・

25

CS Azuma Kofuji Power Plant, the largest Sponsor-developed
project, has been transferred to the Bridge Fund・・・・・・

26

Expand pipeline by utilizing the development capabilities of the27
sponsor group・・・・・・・・・・・・・・・・・・・・・・・
Diversification of sourcing channels and enhancing theflexibility to grow・・・・・・・・・・・・・・・・・・・・・・

28

Canadian Solar Group’s Global Operations（1） ・・・・・

36

Canadian Solar Group’s Global Operations （2） ・・・・・

37

Value Creation using the Sponsor Group’s Vertically Integrated
Model (manufacturer, developer, AM・O&M) ・・・・・・・・

38

Organizational Structure・・・・・・・・・・・・・・・・・・

39

Asset List– Operational Result for 12th FP・・・・・・・・・・

40

ESG Initiatives (Environment) ・・・・・・・・・・・・・・・

42

ESG Initiatives (Social)・・・・・・・・・・・・・・・・・・・

43

ESG Initiatives (Governance)・・・・・・・・・・・・・・・・

44

Status of Unitholders ・・・・・・・・・・・・・・・・・・・

45

Balance Sheet for 12th FP・・・・・・・・・・・・・・・・・・

46

Statement of Income for 12th FP ・・・・・・・・・・・・・・

47

Portfolio Assets ・・・・・・・・・・・・・・・・・・・・・・

48

Distributions based on stable cash flow under the FIT
system・・・・・・・・・・・・・・・・・・・・・・・・・・・

50

Rational and stable distribution policy・・・・・・・・・・・・

51

Operating revenue / expenditure structure for long-term andstable forecasts・・・・・・・・・・・・・・・・・・・・・・

52

Overview of curtailment・・・・・・・・・・・・・・・・・・

53

Capacity increase of cross-regional interconnection lines
to reduce curtailment・・・・・・・・・・・・・・・・・・・
Main Points of the Revised Renewable Energy Act（1）・・・
Main Points of the Revised Renewable Energy Act（2）・・・
Main Points of the Revised Renewable Energy Act（3）・・・
Disclaimer・・・・・・・・・・・・・・・・・・・・・・・・・

54
55
56
57
58

1

1. Financial Highlights

2

Financial highlights of 12 th FP

In the 12 th FP, actual energy output was lower than the projected energy output, mainly due to the large increasein the number of output curtailments in Kyushu area though the weather was favorable in general. As a result,operating revenues decreased by 238 million yen from the initial forecast in February.

Despite a decrease in maintenance and management costs, depreciation and administrative fees, as well as
insurance income of 56 million yen recorded in non-operating incomes and expenses, net income was 144 million
yen below the initial forecast and EPU was 374 yen below the initial forecast (Distributions in excess of earnings
increased by 374 yen, and total distributions per unit remained at 3,750 yen).
Statement of Income
Data(million yen)

11th FP
Actual12th FP (ended Jun. 2023)
Forecast@Feb.15,2023

Amendment@Jun.30,
2023

ActualIncrease /(Decrease)(vs Forecast)

Operating revenues

3,715

3,690

3,400

3,452

(238)

Operating income

1,383

1,352

1,107

1,156

(196)

Income before income taxes

1,214

1,149

963

1,003

(145)

Net income

1,213

1,148

962

1,003

(144)

Distribution per unit
(including distributions inexcess of earnings)

3,750 yen

3,750 yen

3,750 yen

3,750 yen-

Distributions per unit
(excluding distributions inexcess of earnings)

3,138 yen

2,696 yen

2,491 yen

2,595 yen(374 yen)

Distributions in excess ofearnings per unit

612 yen781 yen1,259 yen 1,155 yen

374 yenMain difference (vs. forecast)
Operatingrevenues

Decrease invariable rent

(226)

Decrease in;Operatingexpenses

Maintenancemanagement cost

20

Depreciation

10

Administration fee

5Nonoperating
Insurance income
incomes andexpenses56

3

Analysis of Operating Revenues in the 12th FP
 In the 12th FP, it is assumed that overall power generation was favorable due to good weather throughout
the period, but the number of times curtailment was implemented, including in Kyushu area, was muchhigher than expected. As a result, the total estimated lost rent was approximately 857 million yen, andactual rent income was 3,452 million yen, 238 million yen lower than the forecast.

Transition of rent income for the 12th FP (period-ended Jun. 2023)(million yen)

4,500
4,000

509

3,500

Rent increase
based onassumed full
power
generation

3,000
2,500

3,690

857

Settlement
amount by proxy output
curtailment(fixed amount)

Estimatedvariable rent
losses bycurtailment

110(nite)

3,452

2,000
1,500

Initialexpected rent

Actual rent

(Note) Proxy output curtailment means that when the actual output curtailment is carried out, the online control operator performs the output
curtailment that should be performed by the offline control operator instead, and under the law, the online control operator is deemed to havegenerated and supplied the electricity, and the online control operator will receive the adjustment amount at a later date, which will be calculated
based on the consideration at the procurement price applicable to there own power generation facilities.

4Portfolio Power Generation Performance Actual power generation in the 12 th FP fell far below the initial forecast since the number of output
curtailments, especially from March to May, increased significantly compared to the previous year
 12th FP actual energy output ÷ projected energy output = 88.05%(10th FP (corresponding period of the previous year): 108.23%)

 12th Fiscal Period（January 2023～June 2023）
Projected energy output(MWh)25,00020,00015,000102.3%
12,251

12,52699.5%
13,477

Actual energy output
93.1%
17,85013,405

16,61969.5%
20,83476.7%
20,756
15,915

14,481

99.7%
17,456

17,40910,000
5,000
0

1月
Jan.

2月
Feb.

3月
Mar.

4月
Apr.

5月
May

6月
Jun.

 11th Fiscal Period（July 2022～December 2022）
Projected energy output(MWh)25,00020,00096.1%
19,845

19,076

97.4%
21,786

21,227

Actual energy output
89.0%
18,223

16,21796.9%
17,53016,982

15,000106.1%
13,907

14,75896.8%
12,018

11,63410,000
5,000
0

7Jul.
月

8月
Aug.

9月
Sep.

10
月
Oct.

11
月
Nov.

12
月
Dec.

5

AUM Snapshot
 A summary of AUM as of the end of 12th FP. The fund has 25 power plants with total panel output of
184 MW and the total acquisition price is approximately ¥80Bn<Portfolio as of the end of 12 th FP>

25 projects# of projects

 Historical valuation and book value (after depreciation)
Valuation priceBook value

80.00

79.03

77.17

76.36

73.86

72.41 71.03 69.59

70.00

Panel output
of AUM

183.9 MW

Total acquisition price asof the end of 12th FP
Total valuation price(Note)
as of the end of 12th FP¥80.00 Bn¥74.87 Bn

60.00
47.09

50.00
40.00

35.96
33.86

50.02 51.49

42.07 42.67

75.27
49.58

75.51 74.87

48.89

46.47 45.57

45.35

30.00
20.00

30.44 31.11〈（Reference）Portfolio after acquisition of assets acquired in the 3rd PO〉# of projects

30 properties

Panel output
of AUM

225.3 MW

Total
acquisition
price¥96.78 bn

Total valuation
price(Note)¥91.99 bn(Note): The term “valuation price ”refers to the intermediate value of power plants whose property numbers in the Asset List on page 12 are S-01 through S-18 estimated by CSIF, based on the valuations of
power plants at the end of June 2023 calculated by PricewaterhouseCoopers Sustainability LLC. As for power plants S-19 through S-25, “valuation price” is the median value calculated by
Kroll, LLC at the end of June 2023, and for power plants in S-26 through S-30 , the median value calculated by Kroll, LLC at the time of the pricing on July 1, 2023

66

Asset List – Power Plant Data, Valuation and etc.
No.

Project nameLocation

AcquisitionPrice(million yen)

Valuation Price(million yen)
(Note)

540

460

0.5%

1,224.00

Portfolio%

Panel
Output(kW)

Electric
Power
service area

Curtailment
rules

Onlinecurtailment
system status

40

Kyushu30-day rule○○FIT Price
(yen)

S-01

CS Shibushi-shi Power Plant

Shibushi-shi,
Kagoshima

S-02

CS Isa-shi Power Plant

Isa-shi, Kagoshima

372

305

0.3%

931.7740

Kyushu30-day ruleS-03

CS Kasama-shi Power Plant

Kasama-shi, Ibaraki

907

853

0.9%

2,127.84

40

Tokyo

30-day rule

S-04

CS Isa-shi Dai-ni Power Plant

Isa-shi, Kagoshima

778

630

0.7%

2,013.99

36

Kyushu30-day rule

○

S-05

CS Yusui-cho Power Plant

Aira-gun,Kagoshima

670

544

0.6%

1,749.30

36

Kyushu30-day rule

○

S-06

CS Isa-shi Dai-san Power Plant Isa-shi, Kagoshima

949

786

0.9%

2,225.08

40

Kyushu30-day rule

○

S-07

CS Kasama-shi Dai-ni Power
Plant

Kasama-shi, Ibaraki

850

738

0.8%

2,103.75

40

Tokyo

30-day rule

S-08

CS Hiji-machi Power Plant

Hayami-gun, Oita

1,029

845

0.9%

2,574.99

36

Kyushu30-day rule

○

989

830

0.9%

2,347.80

40

Kyushu30-day rule

○

1,733

1,505

1.6%

3,928.86

40

Kyushu30-day rule

○

1,018

950

1.0%

2,448.60

32

Tokyo

30-day rule

514

477

0.5%

1,336.32

36

Tokyo

30-day rule

19,751

19,04720.7%

47,692.62

36

Kyushu30-day rule

246

221

0.2%

636.0032

Tohoku30-day rule

746

643

0.7%

1,930.50

32

Chugoku

30-day rule○

Ashikita-gun,
Kumamoto
Shimabara-shi,
NagasakiChichibu-gun,
SaitamaTagata-gun,Shizuoka
Kamimashiki-gun,
Kumamoto
Koriyama-shi,
Fukushima
Tsuyama-shi,
Okayama

S-09

CS Ashikita-machi Power Plant

S-10

CS Minamishimabara-shi
Power Plant (East & West)

S-11

CS Minano-machi Power Plant

S-12

CS Kannami-cho Power Plant

S-13

CS Mashiki-machi Power Plant

S-14

CS Koriyama-shi Power Plant

S-15

CS Tsuyama-shi Power Plant

S-16

CS Ena-shi Power Plant

Ena-shi, Gifu

757

714

0.8%

2,124.20

32

Chubu

360-hour rule

○

S-17

CS Daisen-cho Power
Plant(A)(B)

Saihaku-gun,Tottori

10,447

9,147

9.9%

27,302.40

40

Chugoku

30-day rule

13th FP(Scheduled)

S-18

CS Takayama-shi Power Plant

Takayama-shi, Gifu

326

289

0.3%

962.2832

Chubu

360-hour rule

○

S-19

CS Misato-machi Power Plant

Kodama-gun,
Saitama-ken

470

397

0.4%

1,082.88

32

Tokyo

30-day rule

S-20

CS Marumori-machi Power
Plant

Igu-gun, Miyagi

850

730

0.8%

2,194.50

36

TohokuUnlimited andUncompensated
rule

○

○

7

Asset List – Power Plant Data, Valuation and etc.
No.

Project nameLocation

AcquisitionPrice(million yen)

Valuation Price(million yen)
(Note)

S-21

CS Izu-shi Power Plant

Izu-shi, Shizuoka

4,569

3,998

4.3%

10,776.80

S-22

CS Ishikari Shinshinotsumura Power Plant

Ishikari-gun, Hokkaido

680

579

0.6%

S-23

CS Osaki-shi Kejonuma
Power Plant

Osaki-shi, Kejonuma

208

186

S-24

CS Hiji-machi Dai-ni Power
Plant

Hayami-gun, Oita

27,851

S-25

CS Ogawara-machi Power
Plant

Shibata-gun, Miyagi

Panel
Output(kW)

Electric
Power
service area

Curtailment
rules

36

Tokyo

30-day rule

2,384.64

24

Hokkaido

0.2%

954.9921

Tohoku27,272

29.6%

53,403.66

40

Kyushu30-day rule

○

2,745

2,730

3.0%

7,515.35

32

TohokuUnlimited andUncompensatedrule○

Portfolio as of the end of 12th FP Subtotal

80,001

74,873

81.4%

183,973.12

-

S-26

CS Fukuyama-shi Power
Plant

Fukuyama-shi,
Hiroshima-ken

1,340

1,349

1.5%

3,316.95

40

Chugoku

30-day rule

○

S-27

CS Shichikashuku-machi
Power Plant

Katta-gun, Miyagi-ken

3,240

3,337

3.6%

9,213.12

36

Tohoku30-day rule

13th FP(Scheduled)

S-28

CS Kama-shi Power Plant

Kama-shi, Fukuokaken

586

614

0.7%

2,242.96

36

KyushuS-29

CS Miyako-machi Saigawa
Power Plant

Miyako-gun, Fukuokaken

5,780

5,941

6.5%

13,011.20

36

Kyushu

S-30

CS Kasama-shi Dai-sanPower Plant

Kasama-shi, Ibarakiken

5,840

5,877

6.4%

13,569.36

32

Tokyo

Assets acquired in the 3rd PO Subtotal

16,786

17,11818.6%

41,353.59

-

-

-

-

Portfolio Total

96,78791,991100.00%225,326.71

-

-

-

-

Portfolio%

FIT Price(yen)

Unlimited andUncompensatedrule
Unlimited andUncompensatedrule-

Onlinecurtailment
system status
13th FP(Scheduled)○○-

Unlimited andUncompensatedrule
Unlimited andUncompensated
rule

-

○
○

30-day rule

(Note): The term “valuation price ”refers to the intermediate value of power plants whose property numbers in the Asset List on page 12 are S-01 through S-18 estimated by CSIF, based on the valuations of
power plants at the end of June 2023 calculated by PricewaterhouseCoopers Sustainability LLC. As for power plants S-19 through S-25, “valuation price” is the median value calculated by
Kroll, LLC at the end of June 2023, and for power plants in S-26 through S-30 , the median value calculated by Kroll, LLC at the time of the pricing on July 1, 2023

8

Impact of curtailment and installing online curtailment
controller■ Impact of curtailment on CSIF
Number of days of curtailment
Number of times CSIF power
plants underwent curtailment
Estimated variable rent losses(thousand Yen)
Ratio of estimated variable
rent losses to projected rental
revenues

5th Fiscal Period(period-ended
Dec. 2019)

6th Fiscal Period(period-ended
Jun. 2020)

7th Fiscal Period(period-ended
Dec. 2020)

8th Fiscal Period(period-ended
Jun. 2021)

9th Fiscal Period(period-ended
Dec. 2021)

10th Fiscal Period(period-ended
Jun. 2022)

11th Fiscal Period(period-ended
Dec. 2022)

12th Fiscal Period(period-ended
Jun. 2023)

21

249

1

206

96

136

24

691

3,750

58,13095

320,420

91,821

114,722

19,773

857,252

0.17%

2.47%

0.004%

9.47%

2.46%

3.10%

0.53%

23.24%

13 days

71 days

2 days90 days

22 days

41days7 days93 days

Generally, the number of curtailment tends to increase in early spring when supply and demandslacken. However, both the number of times curtailment was implemented and the estimatedvariable rent loss increased significantly in the 12th FP compared to the previous year.

■ Rationale behind installing online curtailment controller
Transition from all-day curtailment to hourly
curtailment with the introduction of online
curtailment controller, it is possible to limit
curtailment to peak hours only

OutputHours subject
to curtailment

Offline output curtailment(all-day curtailment)

OutputCurtailment limited
to peak hours only

Full day output curtailment
regardless of peak hours
7時 8am
8時 9am10am
9時 10時11時12時13時14時15時16時
7am
11am12pm1pm 2pm 3pm 4pm 17時
5pm

Online output curtailment(hourly curtailment)

Time

7時
10時11時12時13時14時15時16時
7am 8時8am 9時9am10am
11am12pm1pm 2pm 3pm 4pm17時
5pm

Time

Reduction of electricity sales loss by installing a curtailment controller■ Promotion of installing online curtailment controller in power plants located in Kyushu

Electric Power Transmission and Distribution Co., Inc. and other distributors

Output curtailment has commenced in many grids across Japan; In addition to Kyushu Electric Power Transmission and Distribution
Co., Chugoku Electric Power Transmission & Distribution Co., Inc. and Shikoku Electric Power Transmission & Distribution Company,
Incorporated as of April 2022, Hokkaido Electric Power Network, Inc. as of May 2022, The Okinawa Electric Power Company, Inc. asof January 2023, Chubu Electric Power Grid Co.,Inc. as of April 2023 and The Kansai Electric Power Company, Inc. as of June 2023.
CSIF has already installed online curtailment controller for solar power plants in Kyushu region, and has been actively installing
online curtailment controllers to other region to reduce negative impact from curtailment.

9Output Curtailment Outlook and Impact on CSIF■

Impact of future output curtailment on CSIF

Output curtailments significantly increased in the 12th FP compared to the previous FP, because new solar energy facilities havebeen constantly installed and soaring power prices encouraged users to save on electricity.
Seasonal analysis of output curtailments status shows that 600 million kWh of output was curtailed in FY2022 and more than
80% of the total curtailment was required in the March-May period, indicating that output tends to be curtailed in spring, whenpower demand starts decreasing. Also, for “30-day Rule projects”, the day of output curtailment in FY2023 is already reaching
the upper limit of 30 days. CSIF believe that these indicate that the curtailment’s impact on CSIF’s performance is limited in the
13th FP ending December 2023.
In addition, CSIF believes that information on output curtailment from some electricity transmission and distribution companies
is insufficient and untimely, and needs to be clearly disclosed■

Initiatives to reduce curtailment of renewable energy power output
METI’s “Mass Renewable Energy Introduction / Next Generation Energy Network Committee” convened a meeting in June 21,2023, in which experts agreed to compile new countermeasure packages for the reduction of curtailment of renewable energy
power output within 2023 after broadly discussing possible actions to be taken each for supply, demand and grid.

Middle- to long-term measures

Short-term measures

1

Spread the online curtailment system among
power plants

1

Expand the interconnection system

2

Lower the minimum thermal power output levelon a national basis(including max. use of pumped storage system)

2

Adjust power supply & demand using
variable renewable energy (wind and solar)

3

Create power demand to be used in storage cells,
water electrolysis equipment and heat pumps

3

Adjust and stimulate power supply & demand
based on the price mechanism

4

Increase renewable energy power transmission
through interconnection under a control system

10Unit Price Performance

While the TSE REIT Index have been on a downtrend after the decision to increase interest rate volatility at
the BOJ’s Monetary Policy Meeting in December 2022, the TSE Infrastructure Fund Index remained stablewithout major fluctuations



Although the number of output curtailments has increased significantly in the 12th FP compared to previous
fiscal periods, CSIF unit price has remained stable almost in line with the TSE Infrastructure Fund Index(yen)

CSIF unit trading volume (right)

CSIF unit price (left)

TSE Listed Infrastructure Fund Index (left)

Nikkei 225 (left)(unit)TSE REIT Index (left)

165,000

4,000

160,000
3,500

155,000
150,000

3,000

145,000
2,500

140,000
135,000

2,000

130,000
125,000

1,500

120,000
1,000

115,000
110,000

500

105,000
100,000

02022/7
Source:Note：2022/82022/92022/102022/112022/122023/12023/22023/32023/4

Tokyo Stock Exchange, Inc.
Weighted average of listed infrastructure funds, Nikkei average, and TSE REIT Index is benchmarked to CSIF’s closing price as of July 1, 2022
and shows the rate of decline since July 1, 2022.

2023/52023/611

2. Major Topics

12

Overview of 3 rd PO①

CSIF will acquire the sponsor-developed assets, and its first third-party developed asset
 Through the offering, CSIF’s total asset size ((Anticipated) acquisition price basis) will expand to
JPY 96.7 bn yen and total panel output to 225.3 MW.
Offering Format

Domestic Offering (Rinpo Format・Transaction will be documented by aJapanese language prospectus. An English
language prospectus will not be prepared.)

Total Units Offered

65,100 units

Total Offering AmountJPY 7,322 million

Issuer Price

JPY 117,292

Issuance Resolution Date
/Delivery Date

June 30, 2023 /July 19, 2023

Asset size((Anticipated)acquisition price basis)

Total panel
output

Joint Lead Managers, Joint Mizuho Securities Co., Ltd.
Bookrunners
SMBC Nikko Securities Inc.

Sponsor-developed assets
S-26

CS Fukuyama-shi
PP

S-27

CS Shichikashukumachi PP

S-29

CS Miyako-machi
Saigawa PP

Anticipated
JPY 1.34 bn
acquisition price

Anticipated
JPY 3.24 bn
acquisition price

Anticipated
JPY 5.78 bn
acquisition pricePanel output

3.3 MW

Panel output

9.2 MW

Panel output

13.0 MW

Location

Fukuyama-shi,
Hiroshima-ken

Location

Katta-gun,
Miyagi-ken

Location

Miyako-gun,
Fukuoka-ken

Abundant sponsor pipeline
26 projects / 365.3 MW

Pre Offering

After acquisition ofassets acquired inthe 3rd PO

JPY 80.0 billion

JPY 96.7 billion

183.9 MW

225.3 MW

Third Party-developed assets
S-30

CS Kasama-shi
Dai-san PP

Anticipated
JPY 5.84 bn
acquisition pricePanel output

13.6 MW

Location

Kasama-shi,
Ibaraki-ken

S-28 CS Kama-shi PP

Anticipatedacquisition price

JPY 0.58 bn

Panel output

2.2 MW

Location

Kama-shi,
Fukuoka-ken

Secondary market

13Overview of 3 rd PO②
Acquired assets①
S-26

CS Fukuyama-shi PP

Power plant located on a hill facing the Seto Inland Sea, reusing a former hotel site
Operator

Sponsor-developed assets

O&M Provider

Fukuyama-shi,
Hiroshima

S-27

CS Shichikashuku-machi PP

EPC Service Provider
FIT Procurement
Price
Applicable
Curtailment Rule

¥40/kWh30-day rule

Site Area

90,794.61 ㎡

Land Rights

Surface rights

Operator
O&M Provider

Shichikashuku-machi
Katta-gun,
MiyagiCS Miyako-machi Saigawa PP

Canadian Solar O&M Japan
Type of Module
K.K.
Daisan Co., Ltd.
Panel Output
Power Output
Panel
Manufacturers
PCS
Manufacturer
Availability Factor onFirst Operating Year
(forecast)

Oct. 15, 2040
Polycrystalline Silicon
3,316.95 kW
3,000.00 kW
Canadian Solar GroupPower Electronics Japan
CorporationーIn preparation for winter snow, bifacial panels are used to pursue power generation
efficiency, reusing a former amusement park site

Sponsor-developed assets

S-29

Canadian Solar Projects K.K.FIT Term End

EPC Service Provider
FIT Procurement
Price
Applicable
Curtailment Rule

Canadian Solar Projects K.K.FIT Term End
Canadian Solar O&M Japan
Type of Module
K.K.
Daiwa Energy Co., Ltd.
Panel Output¥36/kWh30-day rule

Site Area

143,369.00 ㎡

Land Rights

Surface rights / Easement

Power Output
Panel
Manufacturers
PCS
Manufacturer
Availability Factor onFirst Operating Year
(forecast)Mar. 30, 2040
Polycrystalline Silicon
9,213.12 kW
6,993.00 kW
Canadian Solar Group
Sungrow Power Supply
Japan Co., Ltd.
ー

A “deemed special high voltage” power plant, which is an aggregate of six high voltage
power plants
Operator
Canadian Solar Projects K.K.FIT Term End
Mar. 30, 2040

Sponsor-developed assets

O&M Provider
EPC Service Provider

Miyako-machi saigawa
Miyako-gun,
FukuokaFIT Procurement
Price

Canadian Solar O&M Japan
Type of Module
K.K.
Kyocera Communication
Panel Output
Systems Co., Ltd.
¥36/kWhPower Output

Applicable
Curtailment Rule

Unlimited・Uncompensated Panel
Rule
Manufacturers

Site Area

407,762.61 ㎡

Land Rights

PCS
Manufacturer
Availability Factor on
Ownership / Surface rights First Operating Year
(forecast)

Monocrystal Silicon
13,011.20 kW
8,380.50 kW
Jinko Solar
Sungrow Power Supply
Japan Co., Ltd.
ー

14

Overview of 3 rd PO②
Acquired assets②
S-30

CS Kasama-shi Dai-san PP

Power plant is adjacent to the CS Kasama Dai-ichi / Dai-ni power plant already owned by
CSIF

Sponsor-developed assets

Kasama-shi,
IbarakiOperator

Canadian Solar Projects K.K.FIT Term End

Sep. 29, 2040

O&M Provider

Canadian Solar O&M Japan
Type of Module
K.K.

Polycrystalline Silicon

EPC Service Provider

Daiwa Energy Co., Ltd.

Panel Output

13,569.36 kW

FIT ProcurementPrice¥32/kWhPower Output

12,000 kW

Applicable
Curtailment Rule30-day Rule

Panel
Manufacturers

Canadian Solar Group

Site Area
Land Rights

S-28

CS Kama-shi PP

PCS
Manufacturer
Availability Factor on
Ownership / Surface rights First Operating Year
(forecast)
291,147.59 ㎡

Sungrow Power Supply
Japan Co., Ltd.
ー

CSIF’s first third-party development project from CSAM’s proprietary network

Third Party-developed assets

Kama-shi,
Fukuoka

Operator

Canadian Solar Projects K.K.FIT Term End

Mar. 30, 2037

O&M Provider

NEO Co.,Ltd.

Type of Module

Polycrystalline Silicon

EPC Service Provider

NEO Co.,Ltd.

Panel Output

2,242.96 kW

FIT ProcurementPrice¥36/kWhPower Output

1,750.00 kW

Applicable
Curtailment Rule

Unlimited・Uncompensated Panel
Rule
Manufacturers

Site Area

35,352.00 ㎡

Land Rights

Surface rights

PCS
Manufacturer
Availability Factor onFirst Operating
Year(forecast)Hanwha Q CELLS Japan Co.,Ltd.
Meidensha Corporation
12.18%

15

Overview of 3 rd PO③
Portfolio Diversification

Since the IPO, CSIF has reduced its concentration risk of projects under management byconsistently acquiring PV projects.
The remaining FIT period is also diversified over a long period of time, aiming to build aportfolio that will support stable cash flows in the future.
Changes in portfolio income diversification (panel output basis)
At IPOEnd of 11th FP（ended Dec. 2022）

TBU

3.5%

65.6%

5.4%
CS Mashiki-machi PP
CS Minami Shimabara-shi PP (east & west)
CS Hiji-machi PP

After acquisition of assets
acquired in the 3rd PO

23.7%

29.0%

21.2%

14.8% 25.9%

12.1%

CS Hiji-machi Dai-ni PP
CS Mashiki-machi PP

CS Hiji-machi Dai-ni PP
CS Mashiki-machi PP

CS Daisen-cho PP (A & B)

CS Daisen-cho PP (A & B)

 Remaining FIT period of CSIF portfolio (panel output basis)(After acquisition of assets acquired in the 3rd PO)
（MW）
100
80

36円/kWh¥36/kWh¥32/kWh
32円/kWh¥24/kWh
24円/kWh

Projects reaching FIT expiration after 2034
6.0

¥21/kWh
21円/kWh

60
40

2023

0.9
2.3

51.2

FIT period: 11 years

20
0¥40/kWh
40円/kWh

6.3
1.2

11.9

2034
2034年

2035
2035年

3.0
1.7

2036
2036年

27.3

2037
2037年

53.4
12.9

2038
2038年

2039
2039年

21.0
22.2
3.3

2040
2040年

16

Overview of 3 rd PO④

Effects of the 3rd offering on DPU
 With the 3rd PO, the EPU forecast for the 14th FP is expected to further increase by 6.61%, and the EPU
forecast for the 15 th FP is expected to increase by 0.96% from the 13 th FP forecasted (excluding
temporary factors) as of February 15, 2023
 As for the full-year forecast, if temporary factors are excluded, EPU for the 14th FP and the 15 th FP is
expected to increase by 3.74% from the forecasts as of February 15, 2023 for the 13 th FP and the 14th FP
 DPU Growth（on a fiscal period basis）
4,000

3,750

3,600
3,200

（JPY）

646 646

815

2,000

2,935

3,750

(forecast)+25 yen(forecast)

3,775
724

728

DPU（excl. distributions in excess of earnings）
DPU（excl. distributions in excess of earnings）

2,800
2,400

3,775

+25 yen3,1293,129

3,022+6.61%

14th FP(ending Jun. 2024）
Forecast as of Jun. 30 2023

Distribution in excess of earnings per unit
Distribution in excess of earnings per unit

(forecast)(forecast)

14th FP(ending Jun. 2024）
Forecast as of Feb.15, 2023

+0.96%

3,051

13th FP（ending Dec. 2023）
Forecast as of Feb.15, 2023

15th FP（ending Dec. 2024）
Forecast as of Jun. 30 2023

 DPU Growth（on a full-year basis）
8,000
7,000
6,000

7,500
1,543

+50 yen(forecast)

7,550
1,370
DPU（excl. distributions in excess of earnings）

（JPY）

5,000
4,000

DPU（excl. distributions in excess of earnings）

5,957+3.74%(forecast)

6,180

Distribution in excess of earnings per unit
Distribution in excess of earnings per unit

3,000
13th FP（ending Dec. 2023）and
14th FP (ending Jun. 2024）
Forecast as of Feb.15, 2023

14th FP (ending Jun. 2024）
and 15th FP(ending Dec. 2024）
Forecast as of Jun. 30 2023

17

3. Earnings Forecast

1813th, 14th and 15th FP Earnings Forecast
 Earnings Forecast
13th Fiscal Period(ending December 2023)

14th Fiscal Period(ending June 2024)

15th Fiscal Period(ending December 2024)

Operating revenues

4,472

4,487

4,445

Operating profit

1,665

1,682

1,639

Ordinary profit

1,148

1,414

1,379

Net profit

1,189

1,192

1,207

3,750 yen

3,775 yen

3,775 yen

2,539 yen

3,129 yen

3,051 yen

1,211 yen

646 yen

724 yenDPU (incl. distributions in excess ofearnings)
DPU (excl. distributions in excessof earnings)
Per unit distributions in excess ofearnings

CSIF aims for growth while maintaining a stable level of distribution payout(Note 1) Figures are rounded down to the nearest million yen.
(Note 2) Above forecasts are based on earnings summary dated August 17, 2023 and is subject to change due to factors including without limitation, acquisition orsale of renewable energy projects, changes in infrastructure markets, fluctuation in interest rates and other changes in circumstances surrounding CSIF.
Forecasts do not guarantee any dividend amounts.

19

Historical and Forecasted Dividend
 CSIF has maintained stable distributions ever since it realized a distribution of JPY3,600 per
unit for the 3rd FP
 CSIF expects to distribute JPY 3,775 per unit for 14 th to 15 th FP, an increase of 25 yen fromthe previous period and CSIF aims to achieve a stable and sustainable distribution payout by
utilizing distributions in excess of earnings

（yen）

4,500
4,000

3,600

3,500

3,650

577

3,000
2,500

3,650

3,700

3,700

708

601

1,340

1,817

3,700

3,750

924

848

2,000

0

3,750
612

3,750

3,750

1,156

1,211

2,594

2,539

12th FP

13th FP

3,775

3,775

646

724

3,129

3,051

14th FP

15th FP

3,903
3,073

1,500
1,000

3,903

2,310

1,783

2,992

3,099

6th FP

7th FP

2,776

2,902

8th FP

9th FP

3,138

500
0

3rd FP

4th FP

5th FP

10th FP

11th FP(Forecast) (Forecast) (Forecast)
DPU (excl. distributions in excess of earnings)(Note)Per unit distributions in excess of earnings

Figures for the 13th~15th Fiscal Period are forecasts and are subject to change. They do not represent guaranteed distribution amounts.

20

４. Management Policy

21

Aiming for JPY 200 billion in asset size based on solar
power plants
 CSIF continues to aim for growth with a new mid-term target of JPY 200 billion yen in asset size,
while diversifying its portfolio with a focus on solar power plants, of which the Canadian Solar
Group has expertise Track Record of Consistent External Growth and Target of asset size (acquisition price basis)

2,000

Assets acquired in the 3rd PO
5 projects / JPY 16.78 billion / 41.4 MW

CS Shichikashuku-machi PP

CS Miyako-machi
Saigawa PP

IPO acquisitionsFirst PO

Second PO

13 projects /72.7MW

3 projects / 30.3MW

2 projects /60.9MW

CS Fukuyama-shi PP

CS Kasama-shi
Dai-san PP

CS Kama-shi PP（JPY 100 Million）

167.8

CS Azuma Kofuji Power Plant
North 1 Zone

North 2 Zone

East 1 Zone

East 2 Zone

South 1 Zone

South 2 Zone

305.9

115.3

8.8

45.6

13.2

967.8
800.0

9.9

426.2
301.0

上場時
2017年10月

IPO(Oct. 2017)

439.4

485.1

485.1

494.0

第5期
（2019年12月）

End of
6th FP

第6期（2020年6月）

End of
7th FP

800.0

800.0

第2期
（2018年6月）

第3期（2018年12月）

End of
3rd FP

第4期（2019年6月）

End of
4th FP

End of
5th FP

第7期（2020年12月）

West 2 Zone

Operational andunder construction
assets 14 projects/ 212.2 MW

310.9

End of
2nd FPWest 1 Zone

800.0

第8期
（2021年6月）

End of
8th FP

第9期（2021年12月）

End of
9th FP

第10期（2022年6月）

End of10th FP

第11期（2022年12月）

After

取得予定資産取得
後

End ofacquisition of
11th FP assets acquired(June. 2018) (Dec. 2018) (June. 2019) (Dec. 2019) (June. 2020) (Dec. 2020) (June. 2021) (Dec. 2021) (June. 2022) (Dec. 2022)

in the 3rd PO

Note： The medium-term target shown above is CSIF’s target as of August 17, 2023, and does not represent a guarantee nor promise that the target will be achieved nor when it
will be achieved. CSIF’s asset size expansion is dependent on financing environment, development schedule of solar power plants in the sponsor pipeline, acquisition
opportunities of projects outside of the sponsor pipeline, and negotiations with sellers.

Underdevelopment
assets 7 projects /138.4MWMid-term
Target（Note）

22

Aim for Further Diffusion of Renewable Energy drawing
on Positive Stance of the Japanese GovernmentAccording to the 6th Basic Energy Plan approved by the Cabinet in October 2021, the government plans to set
the share of renewable energy as the top source of energy. Also, it seeks to approx. double the ratio of renewableenergy (compared to FY2020 actuals, 20%) by FY2030; somewhere between 36%~38% of the total energy mix.

Solar power is expected to compose 14%~16% of the total energy mix. Moreover, installed capacity of solar
power by FY2030 is expected to significantly larger than other renewable energy sources.

Expected installed capacity by renewableenergy source

Ratio of renewables to total energy mix

100%

80%

Renewable energy

Nuclear

LNG

Coal-fired

Oil thermal, etc.

Hydrogen・Ammonia

7%

3%
26%

（GW）
140

1%

120

2%
19%

32%

Breakdown of renewables

40%

Biomass
5%27%
20~22%

37%
20~22%

20%

6%
18%

0%

FY20192019年度Actual実績

36~38%
22~24%

発電導入量（2022年3月時点）（実績）
The amount of power generation (as of March 2022) (actual)

117.6

発電導入量（2020年3月時点）（実績）
The amount of power generation (as of March 2020) (actual)

100

20%
60%

Expected installed capacity by FY2030 (ambitious goal)
2030年度までの発電導入量（見込み）（野心的水準）

Hydraulic
11%

Solar
14~16%

Wind
5%
Geothermal
1%

FY2030 Target
FY2030 Target
2030年度政府目標
2030年度政府目標(2015 forecast) （第6次エネルギー基本計画)(6th Basic Energy Plan)（平成27年見通し）

Source: Compiled by the asset manager based on documents by the Strategic Policy
Committee of the METI Agency for Natural Resources and Energy Advisory Committee
for Natural Resources and Energy

Installed capacity of solar
power is expected to exceedthat of other energy sources

80
60

10.3
50.7

40
55.8
20
0

50.0
23.6

Solar

太陽光

0.6
4.2

1.5
0.6

Wind power

Geothermal

風力

地熱

8.0
1.1
4.5
Hydraulic

水力

Biomass

バイオマス

Source: Compiled by the asset manager based on documents by the Strategic Policy Committee of the METI Agency
for Natural Resources and Energy Advisory Committee for Natural Resources and Energy
Note:
The amount of power generation (as of March 2022) (actual) represents the increase from the amount of
power generation (as of March 2020) (actual). With regard to the amount of hydroelectric power generation(actual), the amount of power generation (as of March 2022) (actual) has not been announced, but theamount of power generation (as of March 2021) (actual) is unchanged from the amount of power generation(as of March 2020) (actual)23

External Growth Strategy（Pipeline）(Pipeline including projects owned by Bridge Fund, the numbers are as of June 30, 2023)
 Target to achieve ¥200 Bn in asset size in the medium term by mainly acquiring assets fromabundant sponsor pipeline
Operational and underconstruction

14 projects, 212.2MW

By size (per asset)

450MW 10MW - 50MW

6
6
3

Total sponsor portfolio

7 projects, 138.4MW

21 projects, 350.6MW

 Operational start year and status ofpipeline assets

 Pipeline snapshot

2

Under Construction

5MW - 10MW
2MW - 5MW

（MW）
400

Operational

Under Constraction

Under development
350.6MW

300
200
100
0

- 2MW

Source: Compiled by the Asset Manager based on disclosures by Canadian Solar Projects K.K.

24

Abundant Pipeline Centered on Sponsor-Developed
Assets Assisting CSIF’s Growth● Operational● Under construction● Under development

Pink box for Bridge Fundprojects

Lower row in each box ; size (MW)/ FIT
price in JPY/ anticipated COD

CS Gunma Takasaki KG PP
24.5 MW/14.49/2022
CS Gunma CC PP
21.0 MW/11.99/2026
CS Gunma Minakami Dai-ni PP
2.2 MW/18/2023
CS Nagano Omachi PP
3.0 MW/10.14/2025(as of June 30, 2023:excluding the five properties
acquired through the 3rd public offering）
Source: Compiled by the Asset Manager based on disclosures by Canadian Solar Projects K.K.

CS Miyagi Kami-machi PP
80.0 MW/10.76/2026
CS Fukushima Sabara PP
3.0 MW/10.79/2024
CS Azuma Kofuji PP
100.0 MW/36/2022

CS Tochigi Kitsuregawa PP
1.2 MW/32/2023

CS Hiroshima Suzuhari PP
17.8 MW/17.97/2022

CS Oita Munechika PP
8.1 MW/32/2023

CS Aomori Maita PP
3.0 MW/10.89/2024

CS Fukushima Ishikawa PP（19.4MW/FIP/2028）

CS Tottori Daisen Dai-ni PP
1.9 MW/11.49/2024

CS Yamaguchi Hofu PP
8.0 MW/14.25/2023

CS Hokkaido Bihoro PP
2.5 MW/18/2021

CS Ishikawa Chausuyama PP（8.9MW/24/2025）
CS Okayama Shinyubara PP
29.9 MW/13.47/2025
CS Yamaguchi Aiofutajima PP(1.2MW/18/2022)

CS Ibaraki Kurusu PP
11.3 MW/24/2022
CS Ibaraki Takamihara PP
1.2 MW/11.99/2024
CS Shizuoka Gotenba PP
2.0 MW/27/2023

25

CS Azuma Kofuji Power Plant, the largest Sponsor-developed
project, has been transferred to the Bridge Fund

Completed transfer of CS Azuma Kofuji Power Plant, the largest (100MW) sponsored development projectin Japan and one of the largest development projects in Japan for which CSIF holds preferential negotiationrights to the Bridge Fund.



Expected to generate approximately 110 million kWh per year, which is equivalent to the electricity
generated by about 31,000 households (September 2022 in operation).
 Acquisition flow via bridge fundPrevious owner owning period

Bridge fund holding period

Asset Manager

Previous Owner
Facilities, ID,
Land, Land use rights,
SPCs owned

Transfer

Bridge Fund
(Limited liability
company)

Sale

Basic agreement

CSAM holds preferential
negotiating rights toacquire the asset in the
futureAsset Management
Investment Corporation

 CS Azuma Kofuji Power Plant Overview
North 1
Zone

East 1 Zone

North 2
Zone

East 2 Zone

South 1
Zone
West 1 Zone

South 2 Zone

West 2 Zone

 CS Azuma Kofuji Power Plant utilizes abandoned
farmland, and the construction of a large-scale solar
power plant makes a significant contribution to therevitalization and promotion of local farming and fishingcommunities.
 Located in an area where horseradish production isthriving, where high water quality for agriculture isrequired, and a series of water quality tests have been
carried out to eliminate concerns about water pollution
related to the development.

26

Expand pipeline by utilizing the development capabilitiesof the sponsor groupCanadian Solar Group has been engaged in development, O&M, and asset management of FIT-eligible solar
power plants from the early stage as well as actively engaging in FIT business operations such as
participating in the FIT auction system and accumulating successful bids.



A total of 15 bids have been conducted since 2017, total capacity of successful bids by Sponsor Groupamounts to 180.358 MW which far surpasses the runner-up which placed a total of approximately 98 MW in
successful bids.
 Operational start years and status of Pipeline(panel output basis as of June 30, 2023)（MW）

Operational
稼働済

建設中
Under
construction

 Track record of participation in FIT auction biddingby sponsor group (as of March 31, 2023)
List of successful bids at FIT auction

開発中 development
Under

400

350.6MW350
300

The sponsor group participated in 9 of the 15 FIT auction bidding.
Total capacity of 180.358 MW in successful bids, the highest outof all participants from the 1st to 15th auctions.
（MW）

200
180

250

160
200

140
120

150

100
80

100

60
40

50

20
0

0

Operational
稼働済

2023
2023年

2024
2024年

2025~
2025年以降

Subtotal
累計

スポンサー・

Sponsor
グループ
Group

27

Diversification of sourcing channels and enhancing theflexibility to grow

CSIF has been promoting the diversification of its sourcing channels with third parties byleveraging the network of CSAM, CSIF’s asset manager.



CSIF aims for further stable external growth not only by directly acquiring properties from sellers,
but also by using various acquisition means such as the effective use of bridge funds etc.
 Diversification of sourcing channels and methods
Methods

Channels
Sponsor network

CSAM’sproprietary
network

Utilize bridge funds

Directly acquiringfrom sellers

 Acquisitions through bridge funds
Infrastructure assets that CSIF intends to eventually integrate into the portfolio can be temporarily warehoused in a bridge fund for
CSIF to acquire at an opportune timing.
By utilizing bridge funds, it is possible to (i) adjust the discrepancy in timing between the seller and CSIF transaction requests and(ii) control the number of projects acquired and the scale of acquisitions, resulting in an increase in projects acquisition
opportunities for CSIF

SellerBridge fundPreferential
negotiation rights
granted frombridge fundPreferential
negotiation rights

Able to acquire
projects at afavorable timing
for CSIF

28

Initiatives for Internal Growth■ Tracking information disclosure and expansion of demand for renewable energy
In light of the rapidly increasing awareness of global efforts towards
carbon neutrality amongst Japanese electricity consumers, CSIF will
grant access to tracking information (key information on renewable
Power Plant as specified in the FIT Non-Fossil Certificate) of CS
Daisen-cho Power Plant (A), Daisen-cho Power Plant (B), and CS
Marumori-machi Power Plant for electricity consumers.
At the Electricity and Gas Strategic Policy Subcommittee held in
December 2022, a proposal to raise the minimum price of
renewable energy traded in the Non-Fossil Value Trading Market has
been submitted for panel review. CSIF believes that the need forrenewable energy trading is rising amongst consumers.

（Summary image of tracking information）
Power producers
Wind PP“A”
FIT NonFossil
Certificate

Power producers

Solar PP
“B”

Geothermal“C”

FIT NonFossil
Certificate

FIT NonFossil
Certificate

JEPX Non-Fossil
Value Trading
Market？？

FIT NonFossil
Certificate

FIT NonFossil
Certificate

Wind PP“A”

Solar PP
“B”

Geothermal“C”

FIT NonFossil
Certificate

FIT NonFossil
Certificate

FIT NonFossil
Certificate

FIT NonFossil
Certificate

Electricity retailers (consumers)

Electricity retailers (consumers)■ New Specific Wholesale contracts with Retail Electricity provider
For the following Power Plants, CSIF has reviewed the existing specific wholesale contracts for premium electricity sales
and concluded new specific wholesale contracts for renewable electricity and with retail electricity providers in April 2023
and June 2023.
CSIF believes that it will contribute to the spread of renewable energy and at the same time, contribute to the realizationof internal growth through the recording of additional rental income.
Power Plant

Renewal Period/
Termination of contract

CS Hiji-machi Dai-ni PP
CS Mashiki-machi PP
CS Izu-shi PP
CS Ogawara-machi PP

Renewal for 1 year
after 2 years

Contract Date

Scheduled Start Date ofSpecific Wholesale

April 24, 2023

July 1, 2023

June 30, 2023

September 1, 2023

June 30, 2023

September 1, 2023

June 30, 2023

September 1, 2023

29

LTV, Fixed-to-variable interest rate
ratio, DSCR and Credit Rating

Debt Profile (1) –■ Issuer’s ratings

CSIF is the only TSE -listed infrastructure fund rated by both of JCR and R&I as of June 30, 2023.

JCR A（Stable）

R&I A-（Positive）(As of August 17, 2023)(As of August 4, 2023)■ Key financial indicators

CSIF intends to build a stable and strong financial base by maintaining a high fixed interest rate ratio
and keeping an appropriate LTV level.
Average borrowing Interest# of financial institutions

DSCR

As of June 30, 2023

As of June 30, 2023

As of June 30, 2023

0.86%

23

2.01x

Fixed interest rate ratio

LTV
End of 13th FP (forecast)

As of June 30, 2023

48.81%

As of June 30, 2023

50.69%

100.0%■ Historical LTV
55%

51.58%

49.78%

50%

40%

54.31%

44.67%

47.00%(Note) Fixed date of swap rate for borrowings at the timeof the 3rd PO (excl. consumption tax bridge loans)

3.00

55.52%

2.50

51.75%
51.97%

45%

88.2%■ Historical DSCR

60%

53.74%

As of August 15,2023 (Note)

49.91%

50.81%

50.69%

2.00
1.50

48.81%

1.00

1.40x

1.50x 1.60x 1.70x

1.80x

2.11x

1.90x

2.00x

第7期
7rd FP

第8期
8rd FP

2.49x

2.29x

2.01x

1.30x

0.50
0.00

IPO

2nd FP 3rd FP 4rd FP 5rd FP 6rd FP 7rd FP 8rd FP 9rd FP 10rd FP 11rd FP 12rd FP End of

13th FP(forecast)

IPO
上場時

nd FP
2第2期

rd FP
3第3期

rd FP
第4期
4

第5期
5rd FP

第6期
6rd FP

第9期
11rd FP 第12期
12rd FP
9rd FP 第10期
10rd FP 第11期

30

Debt Profile (2) – Summary of Loans and Bonds■ Overview of Interest-bearing Debts (As of June 30, 2023)
Category

Loan

Bond

Type

Initial amount(yen millions)Interest rate

Interest rate
type

Base rate plus 0.45%(fixed at 0.845% upon executing interest rate swap)
Base rate plus 0.45%(fixed at 1.042% upon executing interest rate swap)
Base rate plus 0.45%(fixed at 0.8199% upon executing interest rate swap)

Floating(Fixed)Floating(Fixed)Floating(Fixed)Outstanding(yen millions)

Drawdown date

Maturity

October 31, 201710 years from drawdown date
JCR Green Finance Evaluation

September 6, 201810 years from drawdown dateLong term

15,70011,078Long term

8,000

5,945

Long term

17,00014,619Long term

1,100

1,100

0.71%

Fixed

November 6, 2019

3,800

3,800

0.80%

Fixed

January 26, 2021

45,60036,543

0.86%

Long term

Total / Average

March 8, 2021

10 years from drawdown date
JCR Green Finance Evaluation
5 years from issuance date
5 years from issuance date
JCR Green Bond Evaluation■ Overview of borrowings in the 3rd POType
Longterm
Longterm
Shortterm

LenderSyndicate of lenders arranged by Sumitomo Mitsui
Banking Corporation, Mizuho Bank, Ltd. and SBI
Shinsei Bank, Limited, as arrangers, MUFG Bank,
Ltd. and Sumitomo Mitsui Trust Bank, Limited as
co-arrangers
Syndicate of lenders arranged by Sumitomo Mitsui
Banking Corporation, Mizuho Bank, Ltd. and SBI
Shinsei Bank, Limited, as arrangers, MUFG Bank,
Ltd. and Sumitomo Mitsui Trust Bank, Limited as
co-arrangers
Sumitomo Mitsui Banking Corporation, Mizuho
Bank, Ltd. and SBI Shinsei Bank, Limited

Scheduled amountof borrowings

Interest rate

Tentative
drawdown
date

Maturity date

Repayment
methodUse of proceeds

Overview

5,800 million yen

Base rate plus 0.45%(fixed at 1.26950%
upon executinginterest rate swap)

July 19, 2023

10 years fromdate of loan disbursement

Balloon

Allocated towards funds for
Anticipated acquisitions andrelated costs and expenses

Unguaranteed
Unsecured

5,800 million yen

Base rate plus 0.45%

July 19, 2023

10 years fromdate of loan disbursement

Balloon

Allocated towards funds for
Anticipated acquisitions andrelated costs and expenses

Unguaranteed
Unsecured

1,100 million yen

Base rate plus 0.20%

July 19, 2023

Earlier date of (i) July 19, 2024or (ii) the first interest payment
date after the consumption tax
refund date

Bullet

Allocated towards funds for
Anticipated acquisitions andpayment of consumption taxes
for related expenses

Unguaranteed
Unsecured■ Stable lender formation with a total of 23 banks, including 3 megabanks, SBI Shinsei Bank andSumitomo Mitsui Trust Bank as arrangers/co-arrangers (after borrowings in the 3rd PO) (excl. consumption tax bridge loans)
SBI Shinsei Bank, Limited

15.2%

Sumitomo Mitsui Banking Corporation 13.7%

Total Debt
（44.2bn yen）

Resona Bank, Limited.

2.9%

The TOCHIGI BANK, LTD.

1.5%

The Oita Bank, Ltd.

2.9%

The Senshu Ikeda Bank, Ltd.

1.4%

MUFG Bank, Ltd.

12.8%

The Tottori Bank, Ltd.

2.8%

The BANK OF SAGA LTD.

1.4%

Mizuho Bank, Ltd.

10.7%

The Chugoku Bank, Ltd.

2.7%

The Bank of Nagoya, Ltd.

1.4%

Sumitomo Mitsui Trust Bank, Limited

7.8%

The 77 Bank, Ltd.

2.1%

The Fukuho Bank,Ltd.

1.0%

The Nanto Bank,Ltd.

6.0%

The Ashikaga Bank, Ltd.

1.8%

The BANK OF FUKUOKA., LTD.

0.6%

THE ASAHI SHINKIN BANK

4.2%

ORIX Bank Corporation

1.6%

San ju San Bank,Ltd.

0.3%

The Hiroshima Bank, Ltd.

3.8%

THE SHONAI BANK, Ltd.

1.5%

31

ESG Initiatives (UN PRI・ESG Report)■ Signatory to UN PRI and Formulation of the “Approach to UN PRI Guidelines” by CSAM

As of August 13, 2019, CSAM became the first Japanese asset manager
of a listed infrastructure fund to be a signatory to the UN PRI (United
Nations supported Principles for Responsible Investment), as asignatory to the UN PRI, CSAM devised an “Approach to UN PRI
Guidelines”.

■

ESG Report

CSAM endorsed the TCFD (Task Force on Climate-related Financial
Disclosures) recommendations in February 2022.
CSIF and CSAM published the ESG report in February 2023.



CSIF selects ESG subjects (materiality) of particular importance to CSIF
and promote efforts to achieve and further improve targets by setting
KPIs and implementing specific measures for materiality items throughfuture activities.

32

ESG Initiatives（TCFD・SFDR）■ The first listed infrastructure fund to conduct disclosures under TCFD guidelines


TCFD was established by the Financial Stability Board (FSB) to promotetransparency on climate-related information disclosures and discuss
implementation methods for financial institutions.



As of February 14, 2022, CSIF conducts climate-related disclosures inaccordance with the guidelines of the “TCFD Recommendations.

■

Adherence to EU Sustainable Finance Disclosure Regulation (SFDR) Article 8 disclosure requirements



SFDR requires financial market participants to disclose information such as policies regarding consideration ofsustainability risk in investment decisions, and also requires disclosure of information for each of the threeclassifications of financial products, according to the applicable classification of the financial products.



CSIF conducted SFDR Article 8 disclosure requirements of pre-defined ESG (including Article 8) for “financial
products that promote environmental or social characteristics” factors.
Article 6

Article 8

Other financial products

Financial products promoting
environmental or social
characteristics

Article 9
Financial products designed tosustainable investments

CSIF

33

ESG Initiatives (Green Finance)■ CSIF revised a new Green Finance Framework which obtained a Green1(F) assessment from JCR, thehighest assessment rating as of June 30, 2023.

Assets acquiredin the 3rd PO

1
2

Stakeholders

Reporting onfund allocation
andenvironmental
improvement

IPO acquisitions

Acquisitions after IPO

3

JCR, Shinsei Green
Loan
Assessment
Anticipatedborrowings(Green loan)

SBI Shinsei Bank,
Limited, etc

Borrowings(Green loan)

Financial
institutions

Investment
corporation
bonds (Green bond)

Bond investors

4 Investment unit

Equity investors(Green equity)

Green1(highest JCR evaluation)

1
2
3
4

Green1(F)(highest JCR evaluation)

CSIF obtained a Green1 (the highest rating) assessment from JCR and a Shinsei Green Loan Assessment from SBI Shinsei Bank, Limited, which isone of CSIF’s arranger banks, for the borrowings of 17.0 bn yen allocated towards acquisitions during the 8th Fiscal Period (acquired on March 8,2021). In addition, as a result of review by JCR, indicates the continuation of the same Green1 (the highest rating) assessment as of June 30, 2022.
The borrowings amounting to 15.7 bn yen which was allocated towards the funds for acquiring the acquisitions for the IPO obtained a Green1 (thehighest rating) assessment by JCR as of November 22, 2017, based on JCR’s evaluation of the use of proceeds and CSIF’s
management/operation/transparency. Also, after an annual review, the borrowings continued to be assessed as Green1 as of June 30, 2022.
As of January 26, 2021, CSIF issued a 5-year Green Bond of 3.8 bn yen, which was given JCR Green1 assessment and the proceeds will be used forthe repayment of borrowings.
Simultaneously with this offering, CSIF has revised its Green Finance Framework to make it also applicable to the issuance of investment units. CSIF
plans to obtain a third-party evaluation of the revised Green Finance Framework from JCR for the issuance of investment units as green equity inaccordance with the new Green Finance Framework.

34

Appendix

35

Canadian Solar Group’s Global Operations（1） Key achievements of Canadian Solar Group
Share of shipping
PV modules

2022 Global share

Top 5

Source: PVeye April 2023,
Vis On Press Co.,Ltd.

Bankability#1 PV module

company consideredbankable in 2022

Source: Bloomberg New Energy
Finance“PV Module and Inverter Bankability
2022”

Operational solar
power plants

Solar power plants underdevelopment or
constructionMore than
94 GW

Approx. 25 GW(as of March 31, 2023)(panel output basis as ofMarch 31, 2023)

 Canadian Solar Group’s history
 Founded in Ontario, Canada in 2001
 Listed on NASDAQ (CSIQ) in 2006
 Entered the Japan market in 2009 and established aproven track record for shipping PV modules
 Over 18,500 employees as of March 31, 2023
 More than 94 GW of cumulative solar panels
shipped

94GW以上のソーラーOver 94GW
モジュールを出荷
solar modules shipped

Active buying customers
in more than 160
countries

25 GW project pipeline
36GWを超えるモジュール容量
25GWプロジェクトパイプライン
Module capacity exceeding 36 GW
セル容量は約21.0GW
47GWhエネルギープロジェクト
47 GWh energy project pipeline
Cell capacity approx. 21.0 GW
パイプラインof CSIQ

Subsidiaries in 23 countries& regions on 6 continents

20 manufacturing facilities
in Asia & Americas

36

Canadian Solar Group’s Global Operations（2）Canadian Solar Group’s Global Operations(As of March 31, 2023)
Solar panel factory：4 countries

North America
CanadaEuropeAsia PacificGermanySpain• Munich, EMEA CSIS HQ• Madrid: EMEA GE HQ• Framlfirt
U.K.
Italy
• London• MilanPolandFrance• Warsaw• Biarritz
Netherland• Amsterdam

ChinaSouth Korea• Suzhou： China HQ • Seoul• Gwangju• Beijing
India• Changshu• New Delhi• Funing
Thailand• Yancheng• Chonburi• Dafeng
Vietnam• Luoyang• Hai Phong• Baotou
Malaysia• Jiaxing• Kuala Lumpur• Jiuquan
Singapore• Suqian• Singapore• Xining
Australia• Taiyuan• Melbourne• Jinan• Sydney• Guangzhou• Hong Kong, SAR
Taiwan• Hsinchu
Japan• Tokyo• Osaka• Fukuoka• Sendai• Guelph： Global HQ• CalgaryU.S.
• Austin: North America HQ• Walnut Creek• New York City

Latin America
Brazil• São Paulo
Mexico• Mexico City
Colombia• Bogota
Chile• Santiago

Source： The above map was compiled by CSAM based Canadian Solar Inc. Investor Presentation June 2023

Middle East
and Africa
U.A.E• Abu Dhabi• DubaiSouth Africa• Cape Town

37

Value Creation using the Sponsor Group’s VerticallyIntegrated Model (manufacturer, developer, AM・O&M)
CSIF operates by fully utilizing the outstanding knowledge that the Canadian Solar Group has accumulated
to date as a total provider of solar power generation as a "vertically integrated model," and considers thecharacteristics of CSIF, including the vertically integrated model, as shown in the figure below.

38Organizational Structure

Canadian Solar Group, under its vertically integrated business model, supports CSIF’s PV plant asset
management by integrating its knowhow and expertise accumulated from a broad range of PV businessdomains
Canadian Solar Asset Management K.K.
Engaged in asset management in Canadian Solar
Infrastructure Fund, Inc.
Established in June 2016

Canadian Solar Projects K.K.
(Sponsor / Operator)
Engaged in construction and operation of solar
energy facilities
Established in May 2014

Asset Managemet
Agreements
Asset
Manager
EquityInterest

SponsorSupportAgreements

Investment
Corporation(Fund)(Note)

Solar Energy
Projects

Sponsor /Operator
O&M Service
Agreements

Provides O&M services to solar energy facilities
including our currently-owned projects
Established in June 2016

Sales of PV modules for use in residential andindustrial solar power systems
Established in June 2009

Loan
Agreements

O&M

Lenders

Landowners

Lease / Operation
Agreements

Canadian Solar Japan K.K.


Investors
EquityLease /
Purchase
Agreements

Canadian Solar O&M Japan K.K.


Distributions

Asset Managemet
Service Agreements

LesseeOperator
SPC, etc.

Note: In the event that CSIF will acquire trust beneficiary rights, the lessor will be the trustee and will be outsourced to conduct facility operations and O&M operations.

Utilities
PPAs /
Interconnection
Agreements

39

Asset List– Operational Result for 12 th FP(in thousand yen)

Basic Rent

Variable Rent
and Other
Revenues

Rental Expenses(incl. depreciation
expenses)

Depreciation
ExpensesProfits andlosses from therental business

No.

Project name

S-01

CS Shibushi-shi Power Plant

17,897

4,313

13,504

9,539

8,707

S-02

CS Isa-shi Power Plant

13,6693,961

11,736

7,925

5,895

S-03

CS Kasama-shi Power Plant

34,60912,261

23,238

14,637

23,632

S-04

CS Isa-shi Dai-ni Power Plant

28,183

7,593

25,581

16,534

10,196S-05

CS Yusui-cho Power Plant

25,6182,703

22,122

14,364

6,200

S-06

CS Isa-shi Dai-san Power
Plant

34,073

8,278

29,26019,971

13,092

S-07

CS Kasama-shi Dai-ni Power
Plant

34,18812,032

31,55517,758

14,665

S-08

CS Hiji-machi Power Plant

36,242

12,27432,062

22,166

16,454

S-09

CS Ashikita-machi Power
Plant

34,121

10,06829,72420,306

14,465

S-10

CS Minamishimabara-shi
Power Plant (East & West)60,61816,86551,58135,40825,902

S-11

CS Minano-machi Power Plant

34,802

9,489

24,006

16,211

20,285

S-12

CS Kannami-cho Power Plant

19,248

7,589

14,998

9,671

11,839S-13

CS Mashiki-machi Power Plant

634,560

157,504

478,785

338,451

313,278

S-14

CS Koriyama-shi Power Plant

7,916

4,129

6,025

4,193

6,020

S-15

CS Tsuyama-shi Power Plant

23,8097,889

19,044

13,16012,65440

Asset List– Operational Result for 12 th FP(in thousand yen)

Rental Expenses(incl. depreciation
expenses)

Depreciation
ExpensesProfits andlosses from therental business

Project name

S-16

CS Ena-shi Power Plant

25,86813,21822,077

14,52617,009S-17

CS Daisen-cho Power
Plant(A)(B)

321,310

184,490

315,777

214,575

190,023

S-18

CS Takayama-shi Power Plant

10,852

16,866

9,816

5,795

17,902

S-19

CS Misato-machi Power Plant

15,068

6,911

11,357

7,603

10,621

S-20

CS Marumori-machi Power
Plant

31,901

15,90429,017

17,05918,788

S-21

CS Izu-shi Power Plant

153,464

74,165

132,375

87,83595,255

S-22

CS Ishikari Shinshinotsu-muraPower Plant

21,19915,847

21,53513,015

15,511

S-23

CS Osaki-shi Kejonuma Power
Plant

6,657

3,880

6,175

3,600

4,362

S-24

CS Hiji-machi Dai-ni Power
Plant

843,148

229,068

639,418

475,621432,799

S-25

CS Ogawara-machi Power
Plant

103,146

43,27982,64454,54563,781

2,572,178

880,591

2,083,424

1,454,481

1,369,346

Total

Basic Rent

Variable Rent
and Other
Revenues

No.

41

ESG Initiatives（Environment）
 In consideration of the environment, CSIF and the Canadian Solar Group contributes to theutilization of renewable energy through renewable energy investments.
 Incorporate measures to reduce environmental impact from manufacturing solar panels


The Canadian Solar Group is focused on reducing the environmental impact from solar panel manufacturing
processes such as greenhouse gases and industrial waste water and have achieved the following reductions in
our environmental
impact from 2017 to 2022.
Reduction of greenhouse gas
emissions (/ MW)2017

Approx.

153 ton-20%

Reduction of industrial water
consumption (/ MW)

2022

2017

Approx.

Approx.

123 ton2,249 ton

2022

-67%

Approx.

750 ton

出所： 「Sustainability Report 2022」 (Canadian Solar Inc.)

 Environmentally-conscious development and operation of CS Daisen-cho Power Plant

Given that Mount Daisen located near CS Daisen-cho Power Plant owned by CSIF, is in close proximity to an
ecosystem rich with forests, plants and wild birds, the Sponsor made efforts to refrain from using chainsaws when developing the project to avoid damaging the habitat of rare species of indigenous falcons aswell as painting the fence around the site using camouflage colors.

42

ESG Initiatives (Social) Canadian Solar Group's relationship with local communities at Hiji-machi


CSAM is sponsoring the Xavier‘s Way Walking in Hijimachi, where CS Hiji-machi Power Plant and CS Hijimachi Dai-Ni Power Plant are located. In 2022, CSAM
employees participated in this event, which is a walkalong a historic trail that Francisco Xavier is said to havepassed through.

 Canadian Solar Group’s relationship with the local community around CS Daisen-cho
The Sponsor constructed the Daisen Canadian Garden and donated it to the Daisen-cho Town Government incommemoration of the completion of CS Daisen-cho Power Plant, now owned by the CSIF after development, and as partof its contribution to local communities in an effort to create harmony between nature and the large-scale solar power
plant. In addition, it repaired the Hima Jinja Shrine in the same town and donated an incense holder made of white
granite to the Shimpukuji Temple.

Repaired the Hima Jinja Shrine

Donated an incense holder made of white granite to
Shimpukuji Temple

In the Daisen Canadian Garden, there is amonument created in the motif of the local mountain,
Mt. Daisen.

 Donation to Marumori-machi, Igu-gun, Miyagi prefecture where CS Marumori-machi is located

The sponsor and CSAM offered donations to the Marumori-machi Town Government. The town was severely hit by
Typhoon Hagibis in October 2019.

43

ESG Initiatives (Governance) Aligning the interest of unitholders with that of the Sponsor


CSIF aims to increase unitholders’s value by aligning the interest of unitholders with that of the sponsor.

After the 3 rd PO, number of units held by thesponsor and holding ratio: 65,672 units 14.63%
 Decision-making Procedures for Asset Purchase and Transfer Transactions with Related Parties


CSAM has implemented measures in the Regulations for Related-Party Transactions to limit adverse effects inconnection with transactions with related parties such as Canadian Solar Group companies where conflicts ofinterest are highly likely to emerge.
Decision-Making Structure Concerning Transactions with Related Parties in connection with Asset Acquisitions and Transfers
Transactions with related parties(such transactions worth 5 bn yen or more)

Transactions with related parties(other transactions)

Drafting of asset acquisition and other plans by the Investment
Management Department

Drafting of asset acquisition and other plans by the Investment
Management Department

Approval by the Chief Compliance Officer(confirmation of the presence or absence of compliance problems including
the state of compliance with laws and regulations)

Approval by the Chief Compliance Officer(confirmation of the presence or absence of compliance problems including
the state of compliance with laws and regulations)

Deliberation and resolution by the Compliance Committee
Deliberation and resolution by theInvestment Management Committee
Deliberation and resolution by the Board of Directors of the AssetManagerApproval by the Board of Directors of the Investment Corporation
and Agreement by the Investment Corporation

Send
proposalback

Rejection andsend proposal
back
Rejection andsend proposal
back
Rejection andsend proposal
back
Rejection,
disagreement
and send
proposal backDeliberation and resolution by the Compliance Committee
Deliberation and resolution by theInvestment Management Committee
Approval by the Board of Directors of the Investment Corporation
and Agreement by the Investment Corporation
Report to the Board of Directors of the Asset Manager

Send
proposalback

Rejection andsend proposal
back
Rejection andsend proposal
back
Rejection,
disagreement
and send
proposal back44

Status of Unitholders
 Unitholding (as at period-ended June 2023)
 By unitholding amount# ofInvestment
units:
386,656

 By unitholders■Individuals / others■Financial institutions

201,698（52.16%）■Domestic Corporates

81,805（21.16%）(incl. financial instruments firms)■Foreign entities & individuals

57,092（14.77%）
46,061（11.91%）

Name

# of
Unitholders:
18,348■Individuals / others■ Financial institutions

17,859（97.33%）(incl. financial instruments firms)■ Domestic Corporates■ Foreign entities & individuals

Number of investment
units held (units)

Canadian Solar Projects K.K.

56,62014.64%

2

The Bank of Fukuoka, Ltd.

7,830

2.03%

3

THE BANK OF NEW YORK MELLON SA/NV 10

7,768

2.01%

4

SSBTC CLIENT ONMIBUS ACCOUNT

7,249

1.87%

5

JP MORGAN CHASE BANK 385650

5,576

1.44%

6

Custody Bank of Japan, Ltd. (Trust Account)

5,265

1.36%

7

THE BANK OF NEW YORK 133522

5,264

1.36%

8

The Master Trust Bank of Japan, Ltd.

4,600

1.19%

9

The Rokinren Bank

4,453

1.15%

10

JP MORGAN CHASE BANK 380646

4,087

1.06%

108,71228.12%(Note): Unitholding ratio is rounded down to the nearest hundredth.

305 （ 1.66%）
133 （ 0.72%）

Unitholding ratio to total
issued units (％)

1

Total

51 （ 0.28%）

45

Balance Sheet for 12 th FP
 12th Fiscal Period (ended June 2023)
 Assets(in thousands of yen)

Current assets
Cash and bank deposit
Operating accounts receivable
Accounts receivable
Prepaid expenses
Consumption tax receivable
Other current assets

4,989,834
1,035,888
181,049
46,202
6,252,975

Total current assets

Structures
Accumulated depreciation
Total structures (net)
Machinery and equipment
Accumulated depreciation
Total machinery and equipment (net)
Tools, equipment and supplies
Accumulated depreciation

Total assets
1,064,093△215,001
849,092
42,495,764△9,077,413
33,418,351
592,466△126,616
465,849

Total tools, equipment and supplies (net)Land

4,505,944-

Construction in progress
Structures in trust△563,468

Accumulated depreciation
Total structures in trust (net)
Machinery and equipment in trust
Accumulated depreciation
Total machinery and equipment in trust (net)
Tools, equipment and supplies in trust
Accumulated depreciation
Total tools, equipment and supplies in trust (net)Land in trust
Total property and equipment

6,590,138
6,026,670
20,291,246△1,972,524
18,318,722
94,418△8,97185,447
4,769,905

SoftwareTotal intangible assets

 Liabilities and Net Assets
Operating accounts payable
Long-term borrowings to be repaid within 1 year
Accounts payable
Accrued expenses
Income taxes payable
Consumption taxes payable
Deposits received
Total current liabilities
Fixed liabilities

12,141
76,365,045(in thousands of yen)
56,3992,267,295
158,704
120,796
848
84,607511
2,689,163
4,900,000
29,376,343

Total fixed liabilities
Total liabilities
Unitholders’ equity
Unitholders’ capital
Amount deducted from Unitholders’ capital
Unitholders’ capital (net)Total unitholders’ equity

2,528

12,141Long-term borrowings

1,156,923
1,159,452

70,099,928

Investment corporation bond

68,443,734

3,751

443,26810
72
15,60037,790496,741

Current liabilities

Surplus
Unappropriated retained earnings(accumulated deficit)
Total surplus

Intangible assets
Leasehold rights

Total fixed assets
Deferred assets
Investment corporation bond issuance cost
Total deferred assets

Fixed assets
Property and equipment

Investments and other assets
Long-term prepaid expenses
Capital investments
Deferred tax asset
Long-term deposits
Guarantee deposits
Total investments and other assets

Total net assets
Total liabilities and net assets

34,276,343
36,965,507
40,631,004△2,234,888
38,396,116
1,003,421
1,003,421
39,399,537
39,399,537
76,365,045

46

Statement of Income for 12 th FP
 12 th Fiscal Period (ended June 2023)(in thousands of yen)

Operating revenues
Rental revenues
Total operating revenue
Operating expenses
Rental expenses of renewable energy projects
Asset management fee
Administrative service fees
Director’s compensation
Tax and dues
Other operating expenses
Total operating expenses
Operating profit
Non-operating income
Interest income
Insurance proceeds
Interest on refund
Other non-operating income
Total non-operating income
Non-operating expenses
Interest expenses

3,452,770
3,452,770
2,083,424
108,941
28,8732,400
52
72,9052,296,597
1,156,173
28
56,880301
57,210141,496
18,947

Interest expenses on investment corporation bond

2,779

Amortization of investment corporation bondissuance expenses

37,730Borrowing-related expenses

8,451

Investment unit issuance expenses
Loss on retirement of fixed assets
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes
Income tax adjustments
Total income taxes
Net income
Profits brought forward

209,406
1,003,977
1,003,977
852
△57
794
1,003,182
239
1,003,421

47

Portfolio Assets (1)S-01 CS Shibushi-shi
Power Plant 1.2MW

S-02 CS Isa-shi
Power Plant 0.9MW

S-03 CS Kasama-shi
Power Plant 2.1MW

S-04 CS Isa-shi Dai-niPower Plant 2.0MW

S-05 CS Yusui-cho
Power Plant 1.7MW

S-06 CS Isa-shi Dai-sanPower Plant 2.2MW

S-07 CS Kasama-shi Dai-niPower Plant 2.1MW

S-08 CS Hiji-machi
Power Plant 2.6MW

S-09 CS Ashikita-machi
Power Plant 2.3MW

S-10 CS Minami Shimabara-shi
Power Plant(East & West) 3.9MW

S-11 CS Minano-machi
Power Plant 2.4MW

S-12 CS Kannami-cho
Power Plant 1.3MW

S-13 CS Mashiki-machi
Power Plant 47.7MW

S-14 CS Koriyama-shi
Power Plant 0.6MW

S-15 CS Tsuyama-shi
Power Plant 2.0MW

48

Portfolio Assets (2)S-16 CS Ena-shi
Power Plant 2.1MW

S-17 CS Daisen-choPower Plant (A&B) 27.3MW

S-18 CS Takayama-shi
Power Plant 1.0MW

S-19 CS Misato-machi
Power Plant 1.1MW

S-20 CS Marumori-machi
Power Plant 2.2MW

S-21 CS Izu-shi
Power Plant 10.7MW

S-22 CS Ishikari
Shinshinotsu-muraPower Plant 2.3MW

S-23 CS Osaki-shi Kejonuma
Power Plant 0.9MW

S-24 CS Hiji-machi Dai-niPower Plant 53.4MW

S-25 CS Ogawara-machi
Power Plant 7.5MW

49

Distributions based on stable cash flow
under the FIT system
Solar power plants that CSIF invests in have a fixed procurement price and period under a feed-in tariff(FIT system), and since the projects under CSIF’s ownership are structured to secure basic rents, CSIF
believe that potential declines in rental revenue is limited.
Structure of electricity sales revenue (source of basic rent and variable rent)
that is less susceptible to economic fluctuations
Electricity
sales revenue

FIT Price

Power generation (power generation
output x the amount of solar radiation)

Generate stable
cash flow

Guaranteed by Japanese Government to sellelectricity at a fixed price for 20 years

Reduce the impact of weather fluctuations bybalancing power generation through regional
diversification

Calculation method of basic rent and variable rent of projects under management and Anticipated acquisitions
Basic rentMonthly projected energy output (P50) ×(100－Y)%
× 70% × FIT purchase price

Even if actual energy output is lower than 70% of projectedenergy output (P50), the operator will be able to receive basic
rent from lessee

Variablerent(Monthly actual energy output × (100－Y)% × FIT
purchase price) － Basic rent

If actual energy output exceeds 70% of projected energy output(P50), possible to obtain variable rent

Diagram of rent structure50

Rational and stable distribution policyCash distributions (include Distribution in excess of earnings) to CSIF’s unitholders for each fiscal period
are calculated by multiplying the residual free cash flow (“NCF”; remaining NCF after deducting dividends
for the previous operating periods is also taken into account.), which refers to free cash flow (“FCF”)
minus debt interest payments, by a fixed ratio, which is determined by CSIF for each fiscal period
 Image of distribution in excess of earnings

FFO(Funds from Operation) = Net income + Depreciation ± Gains / Loss on sale of renewable energy power plants
・・・FCF made by renewable energy facilities
Capitalexpenditure
Debt
repayment

Depreciation

FCF
FFO

Net Income

Distribute more than
90% of Net income

Distribution inexcess of
earnings

Distribution
from profit

NCF

Multiply bya certain ratio

Cashdistribution

Remaining NCF
after deducting
dividends until theprevious
operating periods
Note: The chart above is presented solely to facilitate a general understanding of the mechanism for cash distributions, and does not represent the ratio of our rental revenues or cash distributions inexcess of retained earnings. CSIF may decide not to make any amount of cash distributions in excess of retained earnings for a particular fiscal period, based on a consideration of factors such as
economic or renewable energy market conditions or financial conditions, among other factors, after taking into account of our financial situation and alternative uses of cash, such as the execution of
repair plans and capital expenditures, the repayment of borrowings and project acquisition opportunities. CSIF may, in place of making cash distributions in excess of retained earnings, decide toacquire our own units.

51

Operating revenue / expenditure structure
for long-term and stable forecasts

It is relatively easy to produce long-dated and stable P/L forecast because CSIF has rent revenue supportedby the FIT system and a large proportion of fixed expenses.

Assuming that CSIF purchases solar power plants with neither additional purchase nor disposition, its
operating revenue, operating expenses and non-operating expenses shall follow the general trend below
during the FIT period. Hence, CSIF understands that CSIF’s current income is to gradually increase over the
medium- to long-term during the FIT period.

Dynamics of solar power plant revenue during FIT period
AmountOperatingrevenues

Operating revenues generally decrease
gradually over the medium to long term due
to expected degradation of PV modules.

Operatingexpenses

Depreciable asset tax, a large expense
component, decreases due to a straight-linebased depreciation, so operating expenses
generally decrease gradually over the
medium to long term, under the assumptionthat expenses other than taxes on
depreciable assets be largely fixed (including
assumed regular maintenance costs).

Nonoperating
expenses

Amortization payments of loan principal andinterest rates that are partially fixed
generally cause non-operating expenses todecrease gradually over the medium to longterm given typical amortization schedules, asthese payments are the primary componentof nonoperating expenses.

Operating revenues
Operating expenses

Net income
Non-operating expenses

Time
Note: The chart above is presented solely to facilitate a general understanding of the theory management considers in approaching the business of solar energy projects during the FIT
period term. The chart assumes the continuous operations of solar energy projects during the FIT period term under normalized conditions, with no extraordinary events, including
additional acquisitions or dispositions of projects, or expenses or changes in the operating or regulatory environment. Actual results may vary significantly depending on theparticular features and circumstances of infrastructure funds, as well as unexpected events or changes or the realization of various risks. You should not rely on this model to predict
the outcome of our operating revenues, operating expenses, non-operating expenses or net income.

52

Overview of curtailment
 In order for electric power companies in each region to stabilize the supply of electricity, each company curtails the output of
power generators to control supply in the event that the supply of electricity in its grid largely exceeds demand.

 Output curtailment of each energy source is implemented according to the priority electric supply dispatch rule. According to thisrule, solar energy output is curtailed after thermal and biomass energy generation, pumped-storage hydroelectric energy
generation, charging of storage batteries for adjusting supply and demand, and electricity is supplied outside the area throughinterconnection.
 Furthermore, output curtailment is equally distributed by introducing a rule that sets the priority of output curtailment by group.
By reducing the burden of output curtailment on all solar power plants, it is expected that output curtailment will be equallydistributed even if solar power plants installed with curtailment controllers will be curtailed less than solar power plants without
curtailment controllers.

 Rules on output curtailment

 Generic output curtailment scenario~Priority electric supply rule (Order of output curtailment)~
Curtail thermal, pumped-storage hydroelectric energy generation charging of

1 storage batteries for adjusting supply and demand

Volume ofgenerated electricity

2 Supply electricity outside the area through interconnection

Curtailment of solar
and wind generators

3 Curtailment of biomass energy generation
4 Supply curtailment of local biomass energy generation
Curtail natural variable renewable energy generation

5 (solar and wind power)

Instruction provided by Organization for Cross-regional Coordination of

6 Transmission Operators

Electricity
demandCurtailment of long-term fixed power source energy generation (nuclear,

7 hydro and geothermal power)

Thermal power generation adjusted to the output
levels of solar and wind power
Geothermal and hydroelectric power generation(excluding pumped-storage hydroelectric power generation)
Nuclear power
Midnight

Morning

Noon

Afternoon

Midnight

Output curtailment volume~Concept of output curtailment by group~Group EGroup GGroup B

Group DGroup GGroup B

Group AGroup CGroup F

Group AGroup E

Day 1

Day 2

Day 3

Day 4

Day X

…

Group F

Source: Compiled by CSAM based on the “Operational Policy on Power Transmission and Distribution” by theOrganization for Cross-regional Coordination of Transmission Operators and “Guideline on Fairness of
Output Curtailment (formulated on March 2017, amended October 2019, April 2021 and April 2022)” by
METI’s Agency for Natural Resources and Energy

53Capacity increase of cross-regional interconnection lines
to reduce curtailment
The Organization for Cross-regional Coordination of Transmission Operators (“OCCTO”) is planning to increase thecapacity of interconnection lines between Hokkaido and Tohoku, Tohoku and Tokyo, and Chubu and Tokyo.
Construction is scheduled to be completed during FY2027.

Also, the OCCTO is discussing plans to expand the grid between the Kyushu and Chugoku region as well as the Chubu
region and Tokyo, in addition to a new underwater power cable connecting the Hokkaido and Tokyo grids. With suchnew capacity, CSIF believes this will lead to a reduction in curtailment.
Existing grid
(past 10 yrs.)
Under construction
Additional capacity(planned)

0.6 million kW→
0.9 million kW

Increased capacity for
Chubu and Kansai
regions(as of March 2019)
Hokkaido – Tohoku

Chugoku - Kansai Kansai - Hokuriku

Tohoku - Tokyo

0.9 million kW→
1.2 million kW(by FY2027)

Hokuriku - Chubu

Kansai

Chugoku Shikoku

TohokuHokuriku

Chubu

Shikoku

60Hz

Hokkaido - Tohoku
Hokkaido - Tohoku

Chugoku

Okinawa

Hokkaido

6 – 8 million kW(underwater power cable)

2.78 million kW→
5.56 million kW

KyushuHokkaido – Tokyo(new build)

Approx. 20 million kW

Kyushu – Chugoku(increased capacity)

Kyushu - Chugoku

50Hz

1.2 million kW

Shikoku - Kansai

Tohoku - Tokyo

Chubu - Tokyo
Frequency converter
station

5.5 million kW→
10.28 million kW

Tokyo(by FY2027)

Kansai - Chubu

Chubu - Tokyo

1.2 million kW→2.1 million kW(as of March 2021)

Chubu – Tokyo

2.1 million kW→3 million kW(by FY2027)

Chubu - Tokyo

3 million kW→5.7 million kW

54

Main Points of the Revised Renewable Energy Act（1） Overview of FIP system

The FIP system allows for the sale of electricity to the wholesale market and arms length transactions as well as paying a premium, thespread between the designated standard price and market price.
Under the FIP system, buyers are not limited to power distributors of large utility companies and retailers. In addition, the purchaseprice fluctuates depending of the time of day.



Revenue dynamics of FIP system
Revenue aftersubsidy

Anticipated revenue after subsidy(designated standard pricea.k.a. FIP price)*pre-determined

Premium

Difference between FIT and FIP
FIT Power purchased at fixed price Buyers are power distributers oflarge utility companies

FIP Receive subsidy calculated based onmarket price Buyers are wholesalers and retailers

Power producer

Power producer

Anticipated revenue frommarket transaction(reference price)

Market price
Designated standard price - Reference price =*linked to fluctuations in
expected revenue frommarket transactions

Aggregator

TSO(Top utilities)

Wholesale market

Premium

Wholesale market

Corporate PPA

Reference method for anticipated revenue (reference price) of market transactions, etc.,
and flow of premium allocation







Determination of the average market price for the previous year

－ Calculate the one-year weighted average of spot and pre-market prices by area, taking into account power generation characteristics.

Determination of the unadjusted premium unit price for the current month－Calculate using the formula: “annual average market price for the previous year + monthly adjusted price (= monthly average market price for the current year - monthly
average market price for the previous year)”

Determination of adjusted premium unit price for the current month－Calculate using the formula: premium unit price before adjustment for the current month × total electricity supply for all areas by power source for the current month (incl.
0.01 yen/kWh time slot) divided by total electricity supply for all areas by power source for the current month (excl. 0.01 yen/kWh slot)

Determination of the amount of premium for the current month－Calculate using the formula: adjusted premium unit price for the current month x electricity supply* in the FIP business for the current month(* Amount of renewable electricity generated by certified power generation facilities and supplied on the market during the current month (excl. 0.01 yen/kWh slot )To be determined after taking into account other factors, including premium during the curtailment time, values outside the wholesale electricity market, balancing costs,
rules on aggregation business and requirements for shifting FIT to FIP
Source: Agency for Natural Resources and Energy website
Note: TSO stands for Transmission System Operator.

55

Main Points of the Revised Renewable Energy Act（2） Detailed rules and procedures were announced by combined meetings under the leadership of Agency for
Natural Resources and Energy (ANREA) in February of 2021. Since then, various systems to start in April 2022
have been discussed until December 2021.
Regulation to maintain cash reserve for power plant demolition costs

Categories subject to the cash
All PV operations with FIT/FIP certificates of more than 10 kW or morereserve system
Cash reserve method

In principle, PV operators with FIT/FIP certificates put cash reserve for demolition cost on OCCTO by withholding such cash reserve fromincoming electricity revenue. Exceptionally, cash reserve within PV operators shall be permitted under certain conditions⇒ For listed infrastructure funds internal, cash reserve was permitted as meeting certain requirements above

Cash reserve period

For ten years prior to the end of the FIT period with a monthly frequency

Cash reserve amountFor accredited solar power plants whose procurement prices have already been determined by FY2019, the reserve amount is the level ofassumed costs for decommissioning, etc. in the procurement price calculation determined by the Procurement Price Calculation Committee Non-operational PV Project : Automatic Cancellation of FIT Certificate

Shall judge the progress status such as application for grid connection work in one year after the operational deadline in case of PV which
has an operational deadline after April 1, 2022
Shall judge the progress status in one year after April 1, 2022 in case PV of which operational deadline is delayed as of April 1, 2022

FIT/FIP Act “Nullification Rules ( Shikko-seido)”
Scenario-1: Legislation
date prior to cut-off
deadline

Rule-1Rule-2Rule-3(exception)

Operational
periodFIT approval

Operational
periodFIT approval

Caution: Cut-off deadline for non-solar
projects that received FIT approval
between FY2012~2017 is determinedbased on a benchmarked date
(December 1, 2020).

Cut-off
deadline

Scenario-2:
Cut-off deadline
expired as of legislationdate

1 year (as of one year after the cut-off deadline, an ICCA (interconnection constructioncommencement application) is not submitted)
Approval nullified
End of operational period (as of one year after the cut-off deadline, an ICCA is
submitted)
Approval nullified
FIT period expiry (as of one year after the cut-off deadline, an ICCA is submitted
and METI has confirmed the construction plan notice)
Approval nullified
after FIT period
expiration

Rule-1Rule-2Rule-3(exception)

Cut-off
deadline

Duration of approvaldate to completiondate
FIT approval

Legislation
date

Deadline expiry

Duration of approvaldate to completiondate
FIT approval

Deadline expiry

1 year(as of one year after completion, an ICCA is not submitted)
Approval nullified

End of operational period (as of one year after completion, an ICCA is
submitted)
Approval nullified
FIT period (as of one year after completion, an ICCA is submitted and METI
has confirmed the construction plan notice)expiryApproval
nullified after FIT
period expiration

56

Main Points of the Revised Renewable Energy Act（3） Discussions on Wheeling ChargeConcerning the regulation on the Wheeling Charge where power producers (including renewable energy
producers) must bear 10% of consignment charges which the retailer previously paid the full cost, a proposal to
exempt wheeling charges on FIT/FIP-certified projects until after the FIT period expires has been submitted.

Summary of the details ofWheeling Charge•

In addition to levy methods and detailed calculation methods, discussions on the Wheeling Charge on
existing FIT-certified projects were held. However, at the “Mass Renewable Energy Introduction / Next
Generation Energy Network Committee” held in December 2021, the government ultimately decided toreach a decision during FY2022 with the common understanding that the effective date will be postponed
from FY2023 to FY2024.

•

At the “Mass Renewable Energy Introduction / Next Generation Energy Network Committee” held in
November 2022, the members decided that careful discussions on how to regulate FIT energy sources
without interrupting the growth of renewable energy. Considering the burden on the Japanese citizens a
motion to either allow installment payments or completely exempt the Wheeling Charge on existing
FIT/FIP-certified projects has been submitted.

•

Finally, the aforementioned committee held in December 2022 decided that the Wheeling Charge are
exempt for existing FIT/FIP projects during their respective FIT periods. After receiving public commentson this new regulation in April 2023, is scheduled to be effective as of FY2024.

Scheme of Wheeling Charge (All of CSIF's assets are already FIT-certified projects)
Wheeling
ChargePower Producers

Consignment
ChargeGrid operators
10%

Utilities bill

Retailers

End Users

90%

Policy to be organized under the basic concept of thatthe reduction of consignment charge due to the introduction of “Power Producer-side
Wheeling Charge” should be appropriately borne by the power producers.

57

Disclaimer• This document has been prepared to provide information, and is not for soliciting and inviting investments in or recommendingtransaction of certain products. We request investors to make investments with their own responsibility and judgment.
• This document does not constitute a disclosure document or a management report based on the Financial Instruments andExchange Act, the Act on Investment Trusts and Investment Corporations or the listing regulations of the Tokyo Stock Exchange.
• In addition to information on Canadian Solar Infrastructure Fund, Inc. (the "Investment Corporation"), this document includes
figures, tables and data prepared by Canadian Solar Asset Management K.K. (the "Asset Manager") based on data/index and otherinformation released by third parties. Analysis, judgment and other views of the Asset Manager on such information at the time of
preparation are also included in this document.
• The information contained in this document is not audited and there is no assurance of the accuracy and certainty of suchinformation. Analysis, judgment and other non-factual views of the Asset Manager represent views of the Asset Manager at thispoint in time. Different views may exist or the Asset Manager may change its views in the future.
• Figures under the same items of other disclosed materials may differ from figures presented in this document due to difference inthe rounding of fractions, etc.
• While the Investment Corporation takes reasonable care in the preparation of this document, there may be errors. Readers arealso cautioned that the contents of this document may be corrected or changed without prior notice.
• The Investment Corporation and the Asset Manager assume no responsibility for the accuracy of data, indexes and otherinformation released by third parties.
• This document includes statements regarding future policies, etc. of the Investment Corporation. However, these statements do notguarantee said future policies, etc.
• For the convenience of preparing graphs, the dates indicated herein may differ from actual business dates.

58